Ecuador: Fund for the Development of Telecommunications in Rural and Urban-marginal Areas

Universal Access Funds, in Ecuador as well as several other countries of the region, were created in response to liberalisation and privatisation policies of the telecommunications companies. These funds, financed through a percentage of the companies’ profits, intended to finance projects to expand telecommunications infrastructure.

This study analyses the Telecommunications Development Fund (FODETEL), the agency in charge of administering the fund in Ecuador, in rural and urban-marginal areas. It points to the lack of reliable indicators in the sector as a problem to examine; it concludes that fulfilment of its goals was limited and reveals funding problems by an inefficient state.

Lastly, it notes the challenges raised by the new constitution, which guarantees ICT access to all. This provides an opportunity to reformulate the fund’s objectives, whose success depends on the government’s commitment and participation and control by all actors.